Ask a dealership salesperson about their main focus, and the answer will likely be customer acquisition, the importance of which is not intended to be downplayed here. But the sales crew, in fact the entire dealership team, should recognize there’s a golden egg now in prioritizing customer retention.
During the pandemic sales bonanza, dealers were acquiring new customers faster than politicians can shout, “I’m fighting for you!” Dealership debt plummeted. Income rocketed. The sales team made money. But that excitement is now essentially in our collective wake.
What happened during those 18 months was that dealers were so busy taking care of new customers and making deliveries as fast as they could get product, they didn’t have time to focus on the importance of following up with existing customers.
So contends Wanda Kenton Smith, the award-winning marketing consultant (and Soundings Trade Only columnist), who is appropriately dubbed the Dean of Marine Marketers. “Customer retention is a major strategy required for retail success,” she says.
Smith urges the marketing and sales teams to actively reach out to customers and re-engage now with relevant messaging, including special offers designed to spark interest and reward loyalty.
“It’s important for salespeople to get off their laurels and get back to personal connections,” Smith says. “Make phone calls, send texts or emails to former customers. It’s time to start professional selling again.”
There may be no better example of the success realized from marketing to existing customers than the Walt Disney Co. In his book Inside the Magic Kingdom, author Tom Connellan notes that an incredible two-thirds of the daily attendees at Disney World are repeat customers. So we can certainly learn something from Mickey and Goofy.
At Disney, the treatment of every customer is the top focus. But it’s not just because there’s a desire that everyone has a magical experience. It’s because the business goal is getting more volume from each. It’s share of customer, rather than share of market.
Disney follows up with customers with such things as special offers, latest news items, customer recognition and regular communications. It illustrates the business success that comes from efforts to keep up customer contact and keep them coming back — and spending more.
So who should be your dealership’s top target customers?
First, study of your customer base. It’s generally accepted that demographics and previous purchase history give strong leads to a customer’s loyalty. People who buy because of a personal referral tend to be far more loyal than those who buy because of fancy ads.
Moreover, those who buy at the standard price are more loyal than those who buy on some promotion. Homeowners, middle-aged people and rural populations also are likely to be more loyal. Conversely, mobile buyers are inherently disloyal because they interrupt their business relations with each move.
Second, identify and recognize the dealership’s most loyal customers. Relaying their reasons for being long-time customers carries a great message to others. Celebrate them and share the reasons for doing the things that make them so valuable. As one sales guru once said: “Love the ones that love you back.”
Third, gather your team and brainstorm attractive offers to those loyal customers who could increase business now.
For example:
• service programs
• guaranteed trade or buy-back options
• accessory add-ons
• hold current-year pricing on new inventory
• finance support offers
• send newsletters with stories about how to get more enjoyment from the boat
• provide training and become a source of education
• establish memberships and a frequent-buyer club
• offer exclusive direct incentives to the top-retained customers
Let imaginations roll during a brainstorming lunch with your crew to come up with more ideas that could prompt existing customers to buy. In these times, the team needs to figure out who their most devoted customers are and elevate connections and retention efforts to the highest priority.
